Compulsory sale of property

What is a compulsory sale of property?

A compulsory sale of property is a sale where the Court is responsible for the sale through an administrator. There may be different reasons why compulsory sale of property is sought, such as:

  • failure to pay joint costs
  • failure to pay debt
  • when, according to special rules, the board of a joint property or housing cooperative petitions for compulsory sale

For those petitioning for compulsory sale:

You can petition for compulsory sale of property when there is an enforceable basis for execution (e.g. distraint, mortgage bonds and legal mortgages).

What must a petition for compulsory sale contain?

  • The parties' names, dates of birth/Business Reg. Nos. and addresses
  • Address of the object subject to compulsory sale, as well as the object's register name (e.g. Business Reg. No. and cooperative share number or land number/title number/unit number)
  • An overview of the monetary claim, divided between primary claim, interest, interest rate and costs
  • Description of the basis for execution 

Which attachments must accompany the petition?

  • Notice of enforced execution pursuant to Section 4-18 of the Legal Enforcement Act, more than 14 days old
  • Confirmed print-out from the Land Register, no older than 3 months. (does not apply for shared ownership flats)
  • Copy of mortgage certificate (for shared ownership flats)
  • Copy of the basis for execution

The dated and signed petition with attachments must be submitted in 4 complete copies.

What is the cost of petitioning for compulsory sale?

You must pay a fee in order to petition for compulsory sale. See fees and payment for a complete overview of fees.

For those who receive petitions for compulsory sale:

If you do not pay joint costs or other debt, creditors can petition for compulsory sale. The board of the housing cooperative or joint property you live in can also petition for compulsory sale of your residence, according to special rules.

How will the Court make you aware of the petition?

Oslo County Court will inform you regarding the petition concerning compulsory sale by having the Chief Process Server serve the petition on you at your residential address or workplace. If there are members of your household over the age of 18, they will be notified about the petition via mail.

Do you disagree with the basis for the petition?

You have the opportunity to submit comments concerning the petition. The deadline for submitting comments is 1 month from when the petition is served on you. Received
objections to the petition will be forwarded to the plaintiff for a statement. In most situations, the Court will address the dispute based on the written statement of case.

Can I request a deferment in the case?

If you want to pay all or part of the claim, you must contact the plaintiff or his/her counsel. If the entire claim is paid, the plaintiff will withdraw the petition. If you are only able to  pay parts of the claim, you should try to enter into a payment agreement with the plaintiff. The plaintiff can then petition to have the case deferred. If the payment agreement is not followed up, the plaintiff will petition to start the case, and the case will proceed.

When does the Court decide to implement compulsory sale?

If plaintiff's claim is not paid, and you have not submitted objections, the Court can rule in favour of compulsory sale. In its decision, the Court will determine whether the compulsory sale shall take place as a sale by auction, or using an administrator.

How does the sale take place?

The vast majority of compulsory sales take place using an administrator (attorney or real estate agent). The property or the flat is announced for sale. The administrator holds showings and the sales process is approximately the same as in an ordinary, voluntary sale. The case is closed when the Court rules to accept a bid and allocates the purchase price to the rights holders.

In those cases where the defendant does not cooperate with the administrator in the sales process, the plaintiff can request that the defendant be evicted from the residence, cf. Section 11-14 of the Legal Enforcement Act.

Please note that plaintiff can retract the petition before a confirmation ruling is served.

Can I sell the residence after the Court has decided to implement a compulsory sale?

Even if the Court has decided to implement an administrator's sale and has appointed an administrator, you can still sell the residence voluntarily. For practical reasons, the compulsory sale process should be deferred. A petition for deferment must come from the plaintiff.

Appeal

You can appeal both the decision for compulsory sale and the ruling regarding confirmation and distribution to the Court of Appeal. The deadline for filing an appeal as regards rulings that confirm a bid is one month, counting from when the ruling is pronounced, while the deadline for filing an appeal as regards distribution of the purchase price is one month counting from when the ruling was served. You must submit the appeal to the Court, together with the appeal fee.